📰 Govt. to ‘restrict’ awards given for scientific research
•The Centre has decided to reduce the number of awards given to scientists and medical researchers on the grounds that they are restricted to only “really deserving candidates”, says the record of a meeting chaired by Ajay Bhalla, Home Secretary.
•The meeting, held on September 16, was attended by Secretaries and senior officials of the Department of Science and Technology (DST), Department of Biotechnology, Ministry of Earth Sciences, the Council of Scientific and Industrial Research, Department of Atomic Energy and representatives from the Department of Health Research – Indian Council for Medical Research and the Office of the Principal Scientific Adviser to the Government of India. The Hindu has viewed the minutes of the meeting made available on September 23.
•Several Ministries made presentations on the awards given by their respective departments. The DST gave 207 awards, of which four were National Awards, 97 were private endowment awards, 54 were lecture, scholarship or fellowship based awards and 56 were ‘internal awards’. The participants then agreed to retain only the national awards and do away with the rest. The department could start a new scheme for scholarship/fellowship with “suitable honorarium and full justification and detailed guidelines”, the minutes said.
•The Atomic Energy Department currently gave 25 “performance-based awards” given by public sector units affiliated to the department and 13 non-core domain awards. The quorum decided to do away with all awards and instead institute a new one “of very high stature”.
•The Indian Space Research Organisation said it did not confer awards, save three internal ones. These too ought to be done away with and replaced with a National level award of “very high stature”, the meeting concluded. The CSIR gave seven awards, including the Shanti Swarup Bhatnagar Awards, that is given annually to accomplished scientists under 45 departments and announced every year on September 26. By norm, the awards this year were to be announced on Monday but was not done this year, several scientists told The Hindu. It couldn’t be confirmed if this was linked to the meeting.
📰 Home and abroad
If India is to unite polarised nations, it must bring divisive forces under control
•Delivering India’s statement at the United Nations General Assembly (UNGA) this year, External Affairs Minister S. Jaishankar spoke of several challenges in India’s past, present and future, with a special emphasis on the immediate “shocks” arising from the war in Ukraine, the COVID-19 pandemic, climate change, and terrorism. In stark contrast to the Pakistan Prime Minister Shehbaz Sharif, who made pejorative remarks about India, Mr. Jaishankar made no direct comment on Pakistan. Nor did he directly mention India’s challenges at the Line of Actual Control, although he criticised China’s habit of politicising and blocking UN Security Council terrorist designations. His comments on Ukraine were watched, as they came days after Prime Minister Narendra Modi was lauded by western countries for telling Russian President Vladimir Putin that the “era of war is over”. Mr. Jaishankar expanded on Mr. Modi’s theme without seeming to either criticise Russia or condone its actions: instead, he said, India stands on the side of peace, of respect for the UN charter, dialogue and diplomacy, and with all those now grappling with the “escalating costs of food, of fuel and fertilizers”. His words were even-handed, and require global stakeholders to consider both the risks from the conflict in Ukraine, and from U.S.-EU led sanctions that could exacerbate global economic fragmentation and inflationary trends. The prognosis seems even bleaker, given that just prior to the UNGA, Mr. Putin delivered a speech committing to Russia’s ability to use “all weapons”, indicating nuclear options, while the Ukrainian President said no dialogue could bring an end to the war, calling instead for more weaponry and a global effort to “punish” Russia.
•Above all, Mr. Jaishankar hailed what he called the “New India” under Mr. Modi, spelling out five pledges made at the 75th Independence day anniversary, which includes making India a developed nation by 2047. He added that India is ready to take on enhanced responsibility at the global body, and called for a reformed UN with an expanded Security Council, as a means at righting the “injustice” done to the global south. The year ahead, where India will host the G-20 summit, will, no doubt, test the will and the ability of the Modi government to play the role of global uniter, and what Mr. Jaishankar called a “bridge” between nations polarised by bitter divides. It is a goal which will only be achievable if New Delhi is able to play a similarly uniting role in its own neighbourhood, and bring polarising and divisive forces within India under control.
📰 Samarkand: a miniature of an emerging world
•That the world is in a state of flux — with all its complexities, hopes, aspirations and fears, but unable to embrace new realities — was in evidence in the historic city of Samarkand during the summit (September 15-16) of the Shanghai Cooperation Organisation (SCO) when key world leaders groped in the dark for an ideal world order.
•The realities they faced were mind-boggling even without their traditional rivals breathing down their necks. Russia was clearly in the dock for its invasion of Ukraine, but the former Soviet Republics were not in a position to call a spade a spade. China was vulnerable because of the deal it had struck with Russia on Taiwan in return for a pledge to support Russia in its war with Ukraine. China appears to have made up its mind that its future lies with Russia as it does not see itself becoming a partner of the U.S. The U.S. seems to have chosen to be with democratic countries in its eventual return to centre stage. The emergence of a Red Quad may well be a possibility to counter democratic forces in the Indo-Pacific. The U.S.’s decision to modernise the Pakistani air force may be to preempt Pakistan from becoming a closer ally of China.
India’s message to Russia
•India had both its biggest adversaries on the table but was not on talking terms with them on account of a conspiracy of circumstances. Ironically, India, with its special historic bonds with Russia, was the only country to demand a cessation of hostilities and want diplomacy and democracy. India bluntly told Russia that this was not the time for war and that the war must stop because of the immense challenges it had posed to the world. India spoke about the oil crisis and the looming food scarcity, the disruption of supply chains and transit trade access. The war had to stop to avert a disaster.
•Russian President Vladimir Putin got away by saying that he understood India’s concerns over the war in Ukraine, promising to try and end the conflict, but blaming the Ukrainian government for prolonging the crisis. He indicated that he was in no hurry to end the war. India has the best of relations with Russia, but the exchange pointed to the future when Russia would be an adversary of India together with China. India appeared to be the spokesperson of the conscience of mankind, which wanted the war to end.
•India’s real business should have been with China, which had violated every bilateral agreement and occupied territories across the Line of Actual Control. Chinese President Xi Jinping was there dictating to the world what kind of new world order must be shaped, and India was silent. The latest disengagement in Ladakh was supposed to have facilitated a thaw in the situation, making it possible for Prime Minister Narendra Modi to attend the SCO, but each side was perhaps waiting for the other to blink.
•India had much to say about Pakistan too when a new Pakistani leader was there, and with no sign of regret over the perpetration of terrorism. Prime Minister Shehbaz Sharif claimed that he had discussed Kashmir with the Chinese President and received an assurance of support, though China made no such statement on Kashmir. The only point that Mr. Modi made was that Pakistan should give India transit trade access by land to Afghanistan and Central Asia. China and Russia had good words to say about India when they welcomed India’s Chairmanship of the SCO and extended their support, which was nothing but a formality. It is impossible to predict the state of the SCO if the war persists and the world reaches an economic crisis.
•India’s position at the summit turned out to be one of questioning Russia on the continuation of the war, which may have positioned India on the right side of history in a world order divided between democracies and autocracies. Clearly, India cannot be with China or Russia in the new dispensation. India made this clear at the SCO summit.
A dress rehearsal
•The Samarkand summit presented, in miniature, the world that may emerge in the future and demonstrated to us where we should stand right now. The Quad may well be the forum that will enable India to protect its interests in the Indo-Pacific, and the SCO may have been a dress rehearsal for what may eventually emerge. As Chairman of SCO, India cannot transform it from within, because a China-Russia-Iran-Pakistan axis will dominate it. India should concentrate on cultivating bilateral relations with democratic nations to build a pole for itself in the new world order.
•The ripples of the events in Samarkand became evident in the United Nations General Assembly at its present session when both the U.S. and Russia declared for the first time that they would favour an expansion of the UNSC to make it more effective. U.S. President Joe Biden indicated his readiness to accept an expansion while Russian Foreign Minister Sergey Lavrov specifically supported India being a permanent member. An effort is on to move with the times and meet the aspirations of developing countries and thus help shape a new world order.
•The government on Monday extended the tenure of the Foreign Trade Policy 2015-20 by another six months till March 2023, instead of replacing it with a new policy by September 30 as it had envisaged, citing requests from industry associations.
•On September 3, Commerce Secretary B.V.R. Subrahmanyam had said the government was readying a new Foreign Trade Policy which would be unveiled on September 30 as part of a package to propel merchandise exports that had dipped sequentially for the third successive month in August.
•“In recent days, exporters and industry bodies have strongly urged the government that in view of the prevailing, volatile global economic and geo-political situation, it would be advisable to extend the current policy for some time, and undertake more consultations before coming out with the new policy,” the Commerce and Industry Ministry said in a statement.
📰 Pitching India as a signature destination
•Earlier this month, the Dhauladhar ranges in the Himalayas were the setting for a gathering of State Tourism Ministers — a first-of-its-kind meeting to discuss, debate and deliberate on modes and mechanisms to develop tourism in India.
•The Ministers brainstormed for three days, co-developing ‘The Dharamshala Declaration’ by drawing inspiration from Prime Minister Narendra Modi’s ‘Whole of Government’ approach, which enables the breaking down of silos and encouraging synergies across various government corridors.
•On the occasion of World Tourism Day (it is held on September 27), I am happy to share this collective vision. ‘The Dharamshala Declaration’ aims to recognise India’s role in contributing towards global tourism as well as focusing on recovery by also promoting domestic tourism — which has been overlooked for long. In his Independence Day speech in 2019, Mr. Modi urged every Indian who could afford to travel, to visit at least 15 locations in India by 2022 and discover the country. However, COVID-19 made this vision a challenge.
•In the declaration, the Tourism Ministry has come up with a strategy and action plan to encourage more Indians to travel domestically and explore India’s natural, cultural, and spiritual beauty while simultaneously reaching the goal of an ‘Ek Bharat Shrestha Bharat’ (interaction and mutual understanding). In parallel, the Ministry has also been working with the Ministry of External Affairs to identify 20 Indian missions abroad with the highest tourist footfalls to India and build country-specific strategies to attract foreign tourists.
Rethinking and reimagining tourism
•Tourism has been one of the sectors severely affected by COVID-19. The Government of India’s Emergency Credit Line Guarantee Scheme was recently enhanced by ₹50,000 crore, from ₹4.5 lakh crore to ₹5 lakh crore to benefit enterprises in hospitality and related sectors such as hotels and restaurants, marriage halls, travel agents, tour operators, adventure and heritage facilities. The pandemic has also given us the time to reset and rethink the way forward for tourism in India. The Ministry of Tourism, after wide-ranging consultations, has prepared a draft National Tourism Policy 2022, which aims at improving the framework conditions for tourism development in the country, supporting tourism industries, strengthening tourism support functions and developing tourism sub-sectors.
•The guiding principles include promoting sustainable, responsible and inclusive tourism in line with our civilisational ethos. From Gautama to Gandhi, India has always spoken about the inherent need to live harmoniously with nature and within our means. The National Green Tourism Mission aims at institutionalising this approach.
•The National Tourism policy also aims to give impetus to digitalisation, innovation and technology through the National Digital Tourism Mission and skilling through the Tourism and Hospitality Sector Skill Mission. The policy also gives a special impetus to private sector participation through public-private-partnerships (PPP). After 2002, this has been the first such attempt to bring forth a transformative tourism policy. Once the new policy is ratified, the Ministry would have a new set of tools and frameworks that are required to execute on the vision and goals we have set for ourselves.
Potential during the G20 presidency
•The country has an opportunity to position itself as a major tourism destination during India’s presidency of the G20 ( December 2022- November 2023). India’s age-old dictum of ‘Atithi Devo Bhava’ will come to the fore as it welcomes delegates from the 20 countries/European Union. Delegates include personnel from the central banks and finance ministries of the G20 countries, close to 15 working groups ranging from anti-corruption and agriculture to health, culture and tourism and foreign ministers, and other ministerial meetings. All these tracks would mean that India will be hosting close to 200 meetings.
•Even as the final list of cities is being finalised based on a set of transparent criteria such as conference infrastructure, accommodation availability, rankings in Swachh Bharat and other parameters, close to 35 cities with this potential have already been identified. During this time, the plan is to ensure due rigour, dedication and showcase the country’s cultural richness while welcoming the world to India. The Ministry of Tourism also plans to work with other Ministries to bring in necessary interventions such as visa reforms, ease of travel, traveller-friendly and improved immigration facilities at airports.
The goals
•Over the past few months, all the major tourism indices such as domestic air passenger traffic, hotel occupancy and tourist footfalls have shown signs of recovery and are going back to pre-pandemic levels. By mid-2024, we would be at pre-pandemic levels, with India achieving $150 billion as GDP contribution from tourism and $30 billion in foreign exchange earnings with 15 million foreign tourist arrivals.
•By 2030, India is estimated to grow at 7%-9% compounded annual growth rate and we expect the enabling policy framework to bring in $250 billion in GDP contribution from tourism, 140 million jobs in the tourism sector and $56 billion in foreign exchange earnings with more than 25 million foreign arrivals.
•The Ministry is committed to delivering on these goals to ensure the positioning of India as one of the world’s best tourism destinations by 2047. World Tourism Day, therefore, is an appropriate day to renew this pledge.
📰 A push for the semiconductor industry
What is India’s modified incentive scheme for the chip-making sector? How is it different from the earlier policy? What are the difficulties faced by the industry?
•Semiconductors are the thumbnail-sized building blocks of almost every modern electronic device. The semiconductor chip-making process is complex and highly exact, having multiple steps in the supply chain such as designing software for chips and patenting them through core Intellectual Property (IP) rights.
•According to the Electronics and IT Ministry, semiconductor demand in India would increase to $70-$80 billion by 2026 with the growing demand for digital devices and electronic products. The modified scheme now provides uniform 50% fiscal support for all nodes. Besides, it will provide 50% of capital expenditure for other steps of the process as well (chip design and ATMP).
•While the new scheme provides equal funding for all steps of the process, the outlay of the scheme remains $10 billion. Notably, just the setting up of one semiconductor fab requires an investment of anywhere between $3 and $7 billion.
The story so far:
•In a bid to make India’s $10 billion chip-making initiative more attractive to investors, the Centre on September 21, approved changes to the scheme for the development of a semiconductor and display manufacturing ecosystem.
How big is the industry?
•Semiconductors are the thumbnail-sized building blocks of almost every modern electronic device from smartphones toconnected devices in the Internet of Things (IoT). They help give computational power to devices. The global semiconductor industry is currently valued at $500-$600 billion.
•The basic component of a semiconductor chip is a sliver of silicon, which is etched with billions of microscopic transistors, forming patterns to control the flow of current while following different computational instructions. The chip-making process is complex and highly exact, having multiple other steps in the supply chain such as designing software for chips and patenting them through core Intellectual Property (IP) rights. It also involves making chip-fabrication machines; setting up fabs or factories; and ATMP (assembly, testing, marking and packaging). The chip-making industry is a highly-concentrated one, with the big players being Taiwan, South Korea and the U.S. among others. In fact, according to a New York Times estimate, 90% of 5nm (nanometre) chips are mass-produced in Taiwan, by the Taiwan Semiconductor Manufacturing Company (TSMC). Therefore, the global chip shortage, U.S.-China tensions over Taiwan, and the supply chain blockages owing to the Russia-Ukraine conflict have led major economies to enter the chip-making sector with a renewed push. For example, the U.S. announcement of $52.7 billion in government funding for the CHIPS and Science Act and the EU’s Chips Act that will mobilise €43 billion for public and private investments.
What are the changes to India’s chip-making scheme?
•In December 2021, India announced its roughly $10 billion dollar production-linked incentive (PLI) scheme to encourage semiconductor and display manufacturing in the country. It also announced fiscal support for a design-linked initiative (DLI) scheme to drive global and domestic investment related to design software, IP rights etc. According to the Electronics and IT Ministry, semiconductor demand in India would increase to $70-$80 billion by 2026 with the growing demand for digital devices and electronic products.
•The new changes announced last Wednesday seek to harmonise government incentives for all technology nodes of semiconductors, according to the Minister of State for Electronics and IT Rajeev Chandrasekhar. In the previous version of the scheme, the Centre was offering to fund 30% of the project cost for 45nm to 65nm chip production, 40% for 28nm to 45nm, and 50% or half of the funding for chips 28nm or below. The modified scheme provides uniform 50% fiscal support for all nodes. Besides, it will provide 50% of capital expenditure for other steps of the process as well (chip design and ATMP).
•So far, Vedanta and Taiwanese chipmaker Foxconn have signed an MoU to set up a ₹1,54,000 crore semiconductor plant in Gujarat. Two other projects have also been announced — a $3 billion plant in Karnataka by the International consortium ISMC and a $3.5 billion plant in Tamil Nadu by Singapore’s IGSS Ventures. The modified scheme also emphasised the production of the 45nm chip, which is fairly less time-consuming and economical in terms of production.
What are the challenges?
•While the scheme is an encouraging move, chip production is a resource-intensive and expensive process. While the new scheme provides equal funding for all steps of the process, the outlay of the scheme remains $10 billion. Notably, just the setting up of one semiconductor fab requires an investment of anywhere between $3 and $7 billion. Analysts, while positive, are concerned that not much of the current scheme outlay would be left to support other elements including display fabs, packaging and testing facilities, and chip design centres. They also argue that the initial funding should focus on areas like design and R&D, for which India already has an established talent pool.
•Chip-making also requires gallons of ultrapure water in a single day, which experts say, could be a task for the government to provide to factories, compounded also by the drought conditions which often prevail in large parts of the country. Another task for the government is to drive up consumer demand in the semiconductor and linked electronics industry to not end up in a situation where these ventures remain successful only till taxpayers are forced to fund required subsidies.
